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Around 7.8 million new assessees started filing income tax returns between assessment years 2012-13 and 2014-15, pushing up the total number of filers to 39.13 million. According to the Income Tax Return Statistics released by the Central Board of Direct Taxes, 31.2 million assessees filed returns in the assessment year 2012-13, which rose to 36 million in 2013-14 and 39.13 million the following year. Most of these were individuals but there were also Hindu Undivided Family entities, firms, associations of persons, companies, limited liability partnerships, trusts, etc. There were 7.5 million more individual filers in 2014-15 than two years ago. As many as 28.9 million individuals filed I-T returns during AY 2012-13, which went up to 33.5 million in AY 2013-14 and further to 36.5 million in AY 2014-15. Of the 36.5 million individuals who filed returns in AY 2014-15, 19.5 million individuals have shown nil salary income. The remaining 17 million individuals showed cumulative sal

The Income Tax(I-T) Department has unearthed cases of tax evasion worth about Rs.38,000 crore involving around 1,000 entities,and has issued notices to 147 individuals, a senior official of the I-T department said. The amount has been arrived at through investigation of cases of stock manipulation in the past two years,the official added. Most of the individual shail from Mumbai,Kolkata, Ahmedabad,Surat,and Delhi,officialssaid.These cities account for most of the trading volumes in the cash segment of the stock market. Prosecution against these entities,who face penalty at the rate of 200 percent on the evaded tax,will start soon, said the official.However,some of the entities involved had declared unaccounted wealth in the central government’s recently concluded Income Declaration Scheme and will get immunity as a result. To evade tax,some entities claimed long-term capital gains by showing a fake back-dated purchase of shares at lower prices,explained at a tax officer. Bu

The tax department on Tuesday came out with draft rules for valuation of assets of charitable institutions for taxation after they convert in to non-charitable entities. The draft norms,on which the Central Board of Direct Taxes has sought comments by October 31,prescribed if ferent methods for computing the aggregate fair market value of total asset softrusts and charitable institutions.The Finance Act,2016,added a new chapter in the Income Tax Act, specifying provisions relating to levy of additional income tax where charitable institutions exempt under the Act cease to exist as charitable organisations or convert intonon-charitable entities. Business Standard New Delhi,26th October 2016

Asserting that the government is determined to implement the goods and services tax (GST)from FY18,Economic Affairs Secretary Shaktikanta Dason Tuesday expressed confidence that the revenue neutralrate structure will be decided next month.“The rate structure on which there is alot of discussion going on at the moment with the GST Council and also in the public domain... will get resolved in the next meeting of GST Council in the first week of November. May be,one or two sittings,it should come to a conclusion,”Das said at an Assocham event in the Capital.Dismissing criticism,he said the rate structure has been prepared, based on “a very practical basis”. Business Standard New Delhi,26th October 2016

The finance ministry is examining the possibility of cutting the corporation tax rate by one to two percentage points, even as the revenue department is set to kickstart Budget consultations with industry and consultants from the first week of November. The ministry’s thinking is part of bringing down the corporation tax rate to 25 per cent by the end of 2018-19, from 30 per cent at present.  An official said the government could look at an across-the-board one to two percentage point reduction in corporation tax rate, from 30 per cent next year, based on the phasing-out of exemptions.  Finance Minister Arun Jaitley had, in 2015-16, promised a reduction in corporation tax rate to 25 per cent by 2019. Towards that, it has laid down the road map to simultaneously phase out exemptions given to the corporate sector to reduce the tax rate, simplify administration, and improve India’s competitive edge globally. Corporation tax is 30 per cent, but it is effectively 23 per cent due to many ex

The government has allowed 100% foreign direct investment (FDI) in `other financial services' carried out by non-banking finance companies (NBFCs), continuing with the liberalisation of the overseas investments regime. “The government has liberalised its FDI policy in other financial services and non-banking finance companies (NBFCs),“ the Department Of Industrial Policy & Promotion (DIPP) said in a press note on Tuesday. Other financial services will include activities which are regulated by any financial sector regulator -RBI, SEBI, IRDA, Pension Fund Regulatory and Development Authority, Natio nal Housing Bank “or any other financial sector regulator as may be notified by the government in this regard“, it said. The investment would, however, be subject to sector conditions such as minimum capitalisation norms specified by the regulator or government agency concerned. Under the current rules, 100% FDI is allowed through automatic route for 18 specified NBFC activit

New RBI norms may ease equity funding norms, increase investor interest for firms The Reserve Bank of India's move to allow up to 100% foreign direct investment (FDI) in regulated financial services companies other than banks or insurance companies through the automatic route is likely to benefit several fintech startups as it is expected to ease equity funding norms, increase investor interest, and also help them expand into more financial services. So far, activities of NBFCs such as underwriting, investment advisory and stock broking were among 18 categories under the 100% FDI automatic route regime. Startups that didn't fall in these categories had to take the approval route. Now, all regulated financial services companies can take the automatic route. In its notification last week, the RBI said other financial services will include activities which are regulated by any financial sector regulators including RBI, Securities and Exchange Board of India, and the Insura